Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Mon Feb 2 2015 22:31:10

eBay's Pattern of Enriching Execs in Times of Layoffs

By: Ina Steiner

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Less than 2 weeks after announcing it would lay off 7 percent of its global workforce, eBay has commenced the axing. eBay and PayPal engineers based in India were among the first to be notified. (See Tuesday's Newsflash news story.)

eBay spokesperson Amanda Miller declined to give specifics about the layoffs. "At earnings we announced that we plan to reduce our workforce globally by approximately 2,400 positions which represents about 7% of our total workforce across eBay Marketplaces, PayPal, and eBay Enterprise. We are not breaking it out by business unit or region."

It's worth noting eBay's pattern of protecting its executives' compensation at the same time as layoffs. In 2008 when eBay's John Donahoe announced layoffs that reduced the company's global workforce by 10 percent, eBay's Board of Directors put into place Golden Parachutes for its top executives.

The current round of layoffs comes after eBay CEO John Donahoe caved to demands from Carl Icahn that he break up the company - and the Board recently announced it is giving Donahoe $23 million if he stays until he finishes splitting eBay and PayPal, with other top executives receiving retention bonuses as well.




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Perminate Link for eBay's Pattern of Enriching Execs in Times of Layoffs   eBay's Pattern of Enriching Execs in Times of Layoffs

by: pace306 This user has validated their user name.

Mon Feb 2 23:28:05 2015

SOME (not all) of those employees helped JD & management steal and abuse sellers. Please pardon me if I dont cry them a river over the layoffs.

Within reason, and without loosing thier jobs they could have "found" for sellers more often, not had Trust & Safety and/or VERO abuse sellers as much, rescored defects and feedbacks, but they didnt.

The same "book" (they went "by the book" to harm people) now got them. To me - its poetic justice.

And, since selling on eBay is so easy and amazing, they can be like Sashee (she too is from India) and make MILLIONS on eBay (like they think we all do)..... until they run into a CS agent who "seller protects" THEM into oblivion!

As for JD and his immediate cohorts, they deserve a trial, a perp walk and jail time for theft, fraud, racketeering, and many OTHER crimes.

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This user has validated their user name. by: askalice59

Tue Feb 3 00:14:37 2015

Fewer people to screw with us. If eBay really does take a dive then the other market places will pick up more sellers/buyers which is fine with me.

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This user has validated their user name. by: thehosst

Tue Feb 3 00:25:15 2015

2500 Power Agents in India out? Does it mean that when we call, we will be only transferred 3 times instead of 6+, because that game they play is quite old, Repeat what you say, Place on Hold, Transfer, Repeat....

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by: comet This user has validated their user name.

Tue Feb 3 00:33:23 2015

Handcuffs?  Check

Police car?  Check

Jail cell?  Check

Now THAT would make ME happy. To see those smug faces behind BARS.  

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This user has validated their user name. by: askalice59

Tue Feb 3 00:37:41 2015

I guess no one really cares

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This user has validated their user name. by: Ed Gadfly

Tue Feb 3 01:06:00 2015

If you sell on eBay and pay fees to that company you encourage and facilitate this behavior.

I get a kick out of all the people who are so proud to have met John the Cad. Show me your friends, and I will tell you what you are.

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This user has validated their user name. by: Map

Tue Feb 3 01:09:08 2015

Can not believe they are getting away with this crap!

Another 23 Mill to stay on till the split.

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This user has validated their user name. by: bitbybit

Tue Feb 3 01:15:46 2015

Well all those purged employees are INVITED to sell on ebay. I don't feel one bit sorry for any of them. They can go cry me a River.

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by: val2525 This user has validated their user name.

Tue Feb 3 02:25:29 2015

Instead of cutting staff, how about cutting executive pay, and using the savings to hire and TRAIN decent CSRs?

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This user has validated their user name. by: Philip Cohen
Web Site

Tue Feb 3 02:26:59 2015

Still, that's another 2400 potential whistle-blowers who may come forward with details of eBay's various frauds on their consumers ...

Regardless, eBay calculated facilitation of auction fraud is well documented at ... http://bit.ly/11F2eas

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid ...

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by: sasikat9 This user has validated their user name.

Tue Feb 3 05:30:29 2015

The pattern is no different than any other large company.....They may not do it right away but the CEO's always get their big bonus's and raises.

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This user has validated their user name. by: Puck

Tue Feb 3 05:37:02 2015

'' ''Around 2,800 employees from the firm's eBay and PayPal are working in two development centres which located in Bangalore and Chennai,''

That's what's called a Bangalore torpedo...

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by: Watching the Wheels This user has validated their user name.

Tue Feb 3 05:51:34 2015

Pampered and overpaid executives are one of the main reasons why the American economy is in the crapper.

It's not so different than the BAILOUTS FOR BONUS BUCKS fiasco, that left thousands of Americans unemployed.

I don't sell on Ebay, but still do not understand how the very regular responders here, are pinning blames on the Ebay employees, as opposed to the American Ivory Tower Money Changers, that have systematically destroyed a once thriving American economy.

Are you all really POed at Ebay, or are you POed at yourselves for letting the venue con of sellers suck you in?

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by: Printers devil This user has validated their user name.

Tue Feb 3 06:40:26 2015

Bye bye e-bay, bye by.
Good sellers leave for your crimes
bye bye baby, bye by.
I for one won't cry.
You had a good fling, you
make honest men cringe,
and your company can go to the wire.
Bye by baby....

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This user has validated their user name. by: Rexford

Tue Feb 3 07:01:39 2015

The day this company went public was the day sellers got the shaft.  Now a large percentage of the employees are getting the shaft.  I only hope that some of them are in a position to become whistle blowers.

The rich have been sticking it to the poor and middle class for centuries. Nothing would please me more than to one day see that smug mug pictured above in handcuffs and sent to prison.  He could have lots of thinking days there.

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by: SleepyTime This user has validated their user name.

Tue Feb 3 07:05:31 2015

I haven't bought or sold on Ebay since 2008...I'm glad I haven't  helped finance the 23Mill...

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by: Red Ink Diary This user has validated their user name.

Tue Feb 3 08:30:04 2015

@SleepyTime

Ditto.
It was lovely in the 'good old days' but they are gone forever and you can't go back.

@Watching the Wheels

When the writing appeared on the wall at eBay in 2008, the clues from 2006 became crystal clear. eBay would no longer welcome or be a viable platform for micro-sellers like me.  Many small sellers were entirely dependent on eBay.

I was angry with eBay. I was never a rock star, but I did make enough to pay tuition for the kids and the extra income helped my family a lot.

I was angry for a long time, eBay was my community and it was spoiled. At the time I predicted eBay would have a platform future lasting no more than 10 years although it probably wouldn't die completely. Just like AOL.

Seven years later it seems to be right on schedule. No, I am not angry any more. I've moved on, but do not buy there or of course sell there.  

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by: Red Ink Diary This user has validated their user name.

Tue Feb 3 08:32:48 2015

PS I don't use PayPal either unless there is no choice and that lack of choice sometimes makes me reconsider if the purchase in question is a want or a need.

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This user has validated their user name. by: Ric

Tue Feb 3 10:37:09 2015

eBay is not the only company that engages in dronwing their top execs,  with money, stock awards and benefits while at the same time terminating the jobs of those who work the hardest and can least afford it. This is a common practice at most Wall Street companies.

Wall Street loves to hear about reductions in staffing, it gives analysts something positive to say when trying to promote a company's shares to potential investors that distracts them for other, less positive talking points.

Donahoe gets a $23 Million dollar bonus to remain at eBay, and around the company, 2,400 workers are sacrificed.  Wall Street will then go on and on about the benefits of staffing and payroll efficiencies in the hopes that investors will not ask about the bonuses lavished on the already overcompensated C Level executives.



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by: gizmo This user has validated their user name.

Tue Feb 3 10:52:54 2015

We always get  deadbay cheerleaders. It is the employees fault , get a clue ebay lovers. I think JD is an employee. Every blog, "poor ebay employees , its not their fault" , bull puckey its not! Theyre  all guilty!

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